In 2014, Tammie Foster was admitted to the emergency room at Pelham Medical Center in Greer, S.C., with severe chest pains. Pelham is owned by Spartanburg (S.C.) Regional Hospital.
Ms. Foster, a medical biller by profession, had both health insurance and a health savings account, and hospital records show Ms. Foster’s bills were paid in full in October 2014.
Nearly 18 months later, however, Ms. Foster received a check in the mail from the South Carolina department of revenue showing almost $500 had been withheld from her refund and sent to Spartanburg Regional, including a $25 service fee.
The hospital confirmed a coding error resulted in Ms. Foster’s settled account getting submitted to the government as bad debt.
The hospital has refunded Ms. Foster in full.
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